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What Is A Business Model - YouTube
Channel: Alejandro Cremades
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hello everyone there is Alejandro
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Madison today we're gonna be talking
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about what is a business model so
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essentially a business model is the way
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in which your business is generating
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income so you are essentially realizing
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or creating value and you're extracting
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or taking away with you the compensation
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that you're receiving from your
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customers in exchange for whatever
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you're putting out in market now it is
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very important to separate the business
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model from the business strategy the
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business model is all about how you are
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creating value and getting compensated
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for it and the business strategy is all
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about how you're planning on bringing
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your business to the market and how
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you're executing on it so with that
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being said let's get into it so the
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first part of the business model is the
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product so essentially you've seen a
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prole in the market you've been able to
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come up with a solution and essentially
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that solution that you're bringing to
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market whether is in the form of a
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service or if it's in the form of a
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product that's essentially what the
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product is all about
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and obviously that product is going to
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have a price you need to price it right
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you're gonna have to do some price
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testing some elasticity on the pricing
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whatever it needs so that you're getting
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the amount of money that people are
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going to be paying for it right so the
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next part of the business model is
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really the market you need to understand
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who you're targeting this I mean what's
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the geographic location who is the
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people that you're gonna be going after
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and essentially this is a critical
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component of the business model because
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ultimately your market and understanding
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who you're going after is going to help
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you in really extracting that value as
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soon as possible really having a
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business model that is repeatable and
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scalable which is at the end of the day
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what investors especially if you want
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investors for your business I really
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want to go and look after know if
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they're able to pull let's say a $1 in
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how many dollars can they take out and
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you are only able
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to do that if you really understand very
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well
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the product that you're bringing to
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market who you're servicing it to and
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then how you're really you know like
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getting out there and how you're getting
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in front of your right customers know
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now the next part of the business model
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is the delivery and essentially the
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delivery is how are you planning on
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bringing that product to market how how
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are you gonna do that it's gonna be like
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BIA Organic distribution channels be our
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partnerships that you're creating is
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there gonna be BIA
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Facebook Ads Google Ads LinkedIn ads you
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really need to understand how you're
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gonna be delivering your business and
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put it in front of the right people and
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for this first you need to understand as
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we were saying before
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who is your market and then really
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understand whether market is so that you
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can get the right people in front of
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whatever you're trying to bring to
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market the next part of the business
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model is the expense is what is the cost
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of this business model I mean what is
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the cost of that product or of that
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service the course that it's really a
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taking in order to really put it in
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front of the right people because at the
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end of the day well you know what
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happening is that it's costing you more
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then essentially what people are willing
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to pay for it and you really need to
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make sure that you get your course very
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tighten up so that you really understand
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you know how much money at the end of
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the day is gonna be your take-home so a
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few examples in terms of business models
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so you have for example the membership
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model a membership model is essentially
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where you're putting out let's say some
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knowledge that you may have and you're
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making people pay for that coaching or
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for that service on a monthly basis a
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certain fee and that could be on a
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recurring basis another example could be
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lets say a freemium to premium I mean
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you've seen this on platforms like
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linkedin or platforms like that where
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you really get the idea of what the
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service is you get to play with it for
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free and then essentially if you want to
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do additional stuff with it
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you
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need to pay a fee that's another way of
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in terms of business model now another
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way could be the franchise I mean you
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developer let's say like a restaurant
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you maybe develop their food and and
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then essentially you are a giving that
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structure those logistics to someone
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else that wants to kind of like
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replicate it but not run with a burden
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or perhaps the logistics and
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coordinating everything a good example
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of this could be McDonald's Burger King
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you name it and then lastly you know you
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have the typical examples like retail
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you have like e-commerce platforms where
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you just go in and these people are
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buying certain amount you know at a
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large scale and then they sell it
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individually and they make you know from
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the margins from those sales that
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they're actually making so essentially
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that's what a business model is all
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about so if you liked this video make
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sure that you hit the like button that
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you leave a comment below and then also
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make sure as well that you subscribe and
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that you check out the fun racing
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training which is the training program
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where we help founders every step of the
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way from A to C with everything related
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to fun racing there you're gonna find
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live Q&A sessions you're gonna find
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every single template that you can think
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of agreements a community of other
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founders and I think that you very much
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who like that so with that being said
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thank you so much for watching
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